![]() ![]() However, when the board is threatened by low firm performance and women directors have greater power, the relationship between board gender diversity and amount of strategic change is the most negative. ![]() Results support a three-way interaction, indicating that when the board is not experiencing a threat as a result of low firm performance and women directors have greater power, the relationship between board gender diversity and amount of strategic change is the most positive. Integrating threat-rigidity theory and team diversity research, we examine how board gender diversity, firm performance, and the power of women directors interact to influence the amount of strategic change. However, diversity may introduce conflict and impede decision making, which could hinder the ability of the firm to make strategic change, especially in times when firm performance is low. Diverse boards have been seen as providing impetus for initiating change.
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